Correction opportunity or beginning of a collapse? Analysis #ETH/USDT after a sharp decline of 10%
The price of Ethereum ($ETH ) against the US dollar has seen a significant drop over the past 24 hours by -10.14%, reaching a level of $2,179.80, indicating a temporary panic state or an enticing entry opportunity for smart traders.
Current technical analysis:
Lowest price in 24 hours: $2,156.21
RSI (6): at 20.43 → in a clear oversold zone 🔻
MACD: in a negative zone but the indicator lines have started to converge, which may indicate a potential positive crossover.
Bollinger Bands: the price broke below the lower limit at $2,163.79, indicating a strong likelihood of a near-term rebound.
Suggested trading strategy (Short-Term Swing Trade):
Entry point: between $2,160 – $2,180
First target (TP1): $2,280
Second target (TP2): $2,360
Stop loss (SL): break below $2,120 and close under it with a 4-hour candle.
Justifications for entry:
Strong support area (around $2,150)
Significant oversold condition on RSI
High likelihood of a strong technical rebound if support is not broken.
⚠️ Important warnings:
The market is highly volatile, do not enter without a stop loss.
Follow news related to Ethereum (such as network upgrades or whale movements).
Monitor Bitcoin's performance as it directly affects ETH movements.
Do you think Ethereum is ready to rebound from this level, or will we see a deeper wave of decline? Share your opinion!